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Games under the Tiered Deferred Acceptance Mechanism

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  • Jiarui Xie

Abstract

We study a multi-stage admission mechanism, known as the tiered deferred acceptance mechanism, designed to benefit some schools over others. The current Chinese college and Turkish high school admission mechanisms are two examples. In this mechanism, schools are partitioned into tiers, and the deferred acceptance algorithm is applied within each tier. Once assigned, students cannot apply to schools in subsequent tiers. This mechanism is not strategy-proof. Therefore, we study the Nash equilibria of the induced preference revelation game. We show that Nash equilibrium outcomes are nested in the sense that merging tiers preserves all equilibrium outcomes. We also identify within-tier acyclicity as a necessary and sufficient condition for the mechanism to implement stable matchings in equilibrium. Our findings suggest that transitioning from the deferred acceptance mechanism to the tiered deferred acceptance mechanism may not improve student quality at top-tier schools as intended.

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  • Jiarui Xie, 2024. "Games under the Tiered Deferred Acceptance Mechanism," Papers 2406.00455, arXiv.org, revised Aug 2024.
    • Handle: RePEc:arx:papers:2406.00455
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